In the sales stage of the customer journey lifecycle we spoke about the sales process and touched upon the importance of matching a customer with a product that meets their demands and needs. Understanding these needs allows you to provide a product intended for them, as determined by a carrier’s target market statements.
Since the introduction of the Insurance Distribution Directive in October 2018, firms selling insurance products have been required to assess their clients demands and needs, and only present products that are compatible with those needs.
If a customer does not obtain a product which meets those needs, they will not be obtaining fair value or a good outcome. As a customer potentially doesn’t have cover fit for purpose, they may have claims declined, the customer may feel their policy was mis-sold and therefore could lodge a complaint. This, could result in negative publicity and making it more difficult to attract new customers. This highlights the importance of ensuring you find products that meet a customer’s demands and needs.
To match our customers with products which meet their needs, a fact find must be undertaken, examples of the type of information that should obtain from the customer are:
This is not a comprehensive list and the level of information required will vary depending on the complexity of the product.
Once the demands and needs assessment has been completed, you must:
As outlined earlier, failure to offer products consistent with a customer’s demands and needs is very likely to result in a complaint and may result in the following: